Service Properties guiding $500 million notes due 2025 in 8% area; pricing Wednesday

By Paul A. Harris

Portland, Ore., June 3 – Service Properties Trust is guiding its $500 million offering of split-rated guaranteed senior notes due Sept. 1, 2025 (Baa3/BB+) in the 8% area, market sources say.

The deal, which is being run in a collaborative effort by the investment-grade and high-yield syndicates, is set to price on Wednesday.

Active bookrunner BofA Securities Inc. will bill and deliver for the public offering. Wells Fargo Securities LLC is also an active bookrunner.

The notes feature a make-whole call until three months prior to maturity, whereupon they become callable at par. They are otherwise non-callable.

Proceeds will be used to repay borrowings under the company’s revolving credit facility.

Service Properties Trust is a Newton, Mass.-based real estate investment trust that owns a portfolio of hotels and net lease service and necessity-based retail properties.

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